The Hong Kong government is stepping up efforts to attract private capital into artificial intelligence (AI) and other emerging technologies with a new HK$10 billion ($1.3 billion) fund.
The new fund aims to mobilize more than HK$30 billion in private-market investments, said Lillian Cheong, Under Secretary for Innovation, Technology and Industry of the Hong Kong government.
In a message during the Hong Kong FinTech Week x StartmeupHK 2026, Cheong said around 20 fund managers have been preliminarily selected to set up sub-funds under the Innovation and Technology Industry-Oriented Fund, which is expected to launch this year.
The fund will target strategic emerging and future industries, including AI, data science, life and health technology, advanced manufacturing, new energy, and new materials. Cheong said:
“To further bridge technological innovation with modern finance, we are also pushing for tech finance by launching the HK$10 billion Innovation and Technology Industry-Oriented Fund this year.”
She said the government hoped to draw quality fund managers from around the world and work with private investors to provide more capital for technology companies.
Hong Kong is also expanding its support for AI computing infrastructure, with the government planning to inject an additional HK$1 billion into its AI subsidy scheme.
The programme helps technology companies, research institutions and universities access advanced computing resources.
The city currently has about 5,000 petaflops of computing capacity, which is expected to increase to 180,000 petaflops by 2032 through the development of the Sandy Ridge Data Facility cluster in the Northern Metropolis. This represents a 36-fold increase from current capacity.
“High-level AI research and commercial deployment demand massive computational power,” Cheong said, adding that the additional subsidy would help local companies and research institutions tap world-class computing resources.
The Hong Kong AI R&D Institute is also expected to begin operations by the end of this year to drive original research breakthroughs and promote industrial applications.
Cheong said the government was building a financing structure covering different stages of technology development, from early-stage startups to more mature businesses.
“Translating technological advancement into market success requires deep and patient capital across the entire value chain,” she said.
The initiatives form part of Hong Kong’s broader ambition to establish itself as an international innovation and technology hub, with the Northern Metropolis designated as a major centre for research, development, and industrial activity.
